Speech by Chris Pissarides on “Fiscal crisis and economic restructuring: lessons for the labour market”

In a talk in Athens on 5 October 2012, Chris Pissarides analyzed the causes of the global financial crisis, as well as of the crisis in Greece and Cyprus. A large part of his talk focused on the relationship between fiscal reforms and the labor market. The talk took place in the context of a charity event under the auspices of the Αmbassador of the Republic of Cyprus and the Association of Greek Industrialists. The talk is available here. Chris Pissarides noted in particular that “Greece can exit the vicious cycle of debt and underdevelopment, and reach the levels of development of its European partners. Accomplishing this goal requires collaboration between the relevant international organizations, the troika, and Greece itself. The troika should reconsider whether what it is asking for Greece is fair and feasible, given the new economic conditions in Europe. And Greece should reconsider the set of necessary reforms, declare that it wants to carry them through, and ensure that it moving steadily towards a flexible economy based on the private sector, with safeguards for employers and employees, which facilitate and encourage investment.”